1988 (8) TMI 151

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....explained to him that the returns were voluntary and the liability of the Wealth-tax arose as a result of disclosure made under the Voluntary Disclosure Scheme, 1975 and the assets disclosed mostly consisted on ornaments of personal use which, if excluded, would reduce the wealth below the taxable limit. It was also submitted that the assessee was assessed to income-tax as her first assessment was completed on 28th March, 1977 and she had an impression if she was liable for wealth-tax, the Department would issue notice calling for the returns. The WTO did not accept the submissions of the assessee for the reasons that filing returns voluntarily does not explain the reason leading to prevention of filing returns within the time. Being assess....

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....ing the return could not be penalised: 1. CWT vs. Ramniklal D. Mehta (1982) 28 CTR (Ori) 69 : (1982) 136 ITR 729 (Ori); 2. Taraknath Paul vs. CWT (1983) 32 CTR (Cal) 61 : (1983) 142 ITR 468 (Cal). The learned AAC agreed with the WTO that the appellant was not wealth-tax assessee previously, and, therefore, Expln. 3 of s. 18(1)(c) of the Act is attracted. He also opined that the appellant being lady could get legal advice from her counsel and, therefore, had she intended to filing the wealth-tax returns in time, she could have filed the same after consulting the counsel. He confirmed the penalties imposed. Hence, these appeals before the Tribunal. 5. The learned counsel for the assessee submitted that the returns for the asst. yr....

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....ing the assessments under s. 17A of the Act, and, therefore, they should be treated as invalid returns and they are non-est. In that case he submitted, it has to be presumed that the assessee did not file any return of wealth-tax and these two assessment years and, therefore, the penalties as per Expln. 3 of s. 18(1)(c) were validly imposed by the WTO. For the asst. yrs. 1978-79 and 1979-80, he submitted, no, reasonable cause had been shown by the assessee for non-filing of the returns and, therefore, penalties were validly imposed. 7. We have considered the rival submissions. Expln. 3 of s. 18(1)(c) runs as under: "Where any person who has not previously been assessed under this Act fails without reasonable cause, to furnish within t....